- The Dow Jones is holding steady as markets await Friday’s NFP report.
- Despite an overall upbeat tone to equities, market sentiment remains hobbled.
- The US is heading into trade talks with China, which Trump staffers historically lack the patience for.
The Dow Jones Industrial Average (DJIA) held steady on Thursday, chugging quietly near the previous day’s closing bids. Investors are braced for this week’s Nonfarm Payrolls (NFP) jobs report, slated to release on Friday, and the Trump administration is hard at work barreling into trade talks with China and exchanging barbs over budget bills with billionaires.
Jobs are the headline datapoint for investors this week. ADP job postings sank in May, causing investors to moderate their expectations for this week’s NFP official follow-up. May’s NFP jobs data report is expected to show a net gain of 130K employment positions over the reference period, down from the previous month’s 177K.
Also in markets: Fed officials still concerned about tariff impacts on inflation
President Trump’s former right-hand hatchet man, Elon Musk, has been lobbing potshots at Trump’s ‘big beautiful budget bill’ this week via social media. Posting to the social media platform that he owns, Musk has been openly deriding the Trump budget that he had a hand in creating.
Musk is ostensibly incensed that the Trump budget codifies functionally none of the federal spending cuts that he swiftly executed without Congressional oversight at the beginning of Trump’s second term. The relationship between two of the most prominent people in the country is souring quickly as the two exchange barbs over social media platforms or through statements to media personnel.
Shares of Tesla (TSLA) were down 8.5% at their lowest on Thursday, slipping below $305 per share after Elon Musk openly claimed that Donald Trump would have lost the federal election without his “involvement”. Earlier this week, Elon Musk also threatened to primary Congressional lawmakers who support the Trump administration’s deficit-heavy spending bill.
The Trump team is racing toward trade talks with China following a call between President Trump and Chinese President Xi Jinping. According to statements by Donald Trump on Thursday, the two had a productive phone call, and tariff negotiations are expected to continue. However, Donald Trump himself and most of his retinue have a poor track record of maintaining their composure when dealing with Chinese trade officials. Trump and Xi exchanged barbs as recently as this week over trade, with both sides accusing each other of violating pre-deal trade terms agreed upon in Geneva, Switzerland, in early May.
Read more stock news: Circle Internet Group stock spikes 235% on IPO debut
Dow Jones price forecast
The Dow Jones Industrial Average remains trapped in a consolidation zone. Investors are awaiting a fundamental shift in either direction, and a routine of nerve-fraying headlines on trade and tariffs has significantly widened the scope of intraday technical signals.
The Dow Jones is pinned to the 42,500 region, with bullish price action firmly capped below the 43,000 handle. However, downside pressure remains firmly subdued, with bids strung along the north side of the 200-day Exponential Moving Average (EMA) near 41,600.
Dow Jones daily chart
Economic Indicator
Nonfarm Payrolls
The Nonfarm Payrolls release presents the number of new jobs created in the US during the previous month in all non-agricultural businesses; it is released by the US Bureau of Labor Statistics (BLS). The monthly changes in payrolls can be extremely volatile. The number is also subject to strong reviews, which can also trigger volatility in the Forex board. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish, although previous months’ reviews and the Unemployment Rate are as relevant as the headline figure. The market’s reaction, therefore, depends on how the market assesses all the data contained in the BLS report as a whole.
Read more.